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SAP ERP HCM Software Analysis and Review

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SAP HCM Hosting & Software Pricing

Hosting and Service Level Agreement

The company's flagship SAP ERP software (part of SAP Business Suite) is an on-premise installation and Software as a Service (SaaS) hosting is not an available option at this time. However, other products within the SAP cadre do offer private cloud, multi-tenant SaaS, and channel partner hosted options; and as such it's important to note the hosting benefits and drawbacks relative to each of these software delivery options.

SAP manages two data centers in Walldorf, Germany and Newton Square, PA. These data centers have been given the company stamp of approval that they are Tier IV facilities (with equipment redundancy, high availability fail-over, and multiple Internet connectivity points), but more importantly SAP has indicated that these facilities are SSAE 16 and ISO 27001 certified. Additional information about these data centers has not been provided, nor has information been given in regard to SAP's Service Level Agreements (SLAs) for the products it does host—such as Business ByDesign. A certain amount of secrecy is to be expected from some vendors regarding proprietary functionality and/or technology specifications, but given the commonplace occurrence of these elements, it is curious that SAP does not provide more insight for prospective customers. Additional data center and hosting options are available though, should customers elect to operate through one of SAP's channel partners. Each of these partners offers their own set of data hosting specs (including co-location centers, SLAs, etc.), so due diligence is required on the part of the customer to determine what that hosting partner can explicitly offer.

SAP HCM Software Pricing

Because, of the overlap in markets and possible applicability to multiple customers, we've included the price points for multiple SAP software solutions. Specifically:

  • Depending on project scope, pricing for SAP Business One can start as low as $7,000 for one user, including software licensing and implementation. However, as SAP pointedly remarks, "pricing may vary by country and currency…and…is the sole responsibility of SAP Business One partners". Indeed, interestingly enough, Business One is only available from SAP Business One partners and cannot be licensed directly from SAP. The aforementioned (and as SAP's puts "nonbinding") project price example represents an average based on surveys among SAP Business One partners in Germany, Denmark, and Ireland. Implementation project pricing depends on project scope defined by the customer. SAP also offers a "hosted" Business One solution via partners for as little as $95 per month for one user; however, this price is based on a 48-month subscription; a minimum of three professional users; and does not include any additional partner fees.
  • Business ByDesign is a cloud solution with a subscription-based pricing model and starts at $89 per user per month (at the base start-point of 10 users).
  • No specific software pricing details were disclosed by the vendor for SAP's Business All-in-One solution. However, given the on-premise nature of the solution, a license/annual maintenance pricing model is used. In addition, SAP also offers a subscription-based hosting option for the Business All-in-One solution.
  • SAP's Business Suite 7 must be installed on-premise and, as such, a licensing model with annual maintenance contracts is at play for this purchase.

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